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Banking digital payments fintech Hybrid payment gateway payment gateway

Security feature: UPI vs Wallets vs Digital Cards

How secure is your payment ecosystem?

The other day I was chatting with a villager on my trip to Rajasthan. He was the owner of a large oilseeds field. Unfortunately, he faced a crop failure due to a delay in rains. Luckily, the crop insurance scheme was his savior.

“What mode do you use for insurance payment?” I asked inquisitively.

“I prefer the UPI Madam. It is so convenient. Direct bank to bank transfer. It has made our lives easier. Previously, I made use of wallets. But, loading money gets hectic sometimes. Also, the security is minimal. How can we be assured that our money is in safe hands?” he replied.

It was amazing to see the outreach of the UPI payment system to the deep pockets of the rural regions of India. Interestingly, the security features of the UPI payment mode left me in awe.

Security Feature of UPI vs Cards vs Wallets
Security features of UPI vs Cards vs Wallets

UPI boasts of a superior payment mode as compared to wallets and digital cards. With UPI 2.0, the signed intent & QR and Invoice in the inbox security features are added.

In the course of this blog, let us compare the security features of UPI vis a vis Digital Cards and Wallets.

Security Features of UPI

UPI Security feature 1: Binding with mobile number

This is a significant feature of UPI that brings in the first layer of security. UPI verification of the user happens during the initial login and registration. The UPI app binds with your mobile number to verify your identity. In case, you change the phone or the number, you need to verify your identity again. This option ensures that your credentials stay safe in case of a mobile threat or identity threat.

UPI Security feature 2: Two-factor authentication

The second security feature comes into effect during the transaction process. While registering on UPI, users are given an option to set an MPIN (Mobile PIN). It is a 4 or 6 digit number set up while registering on the UPI app. You can generate it by clicking on create/generate MPIN tab and entering the debit card details (last six digits and card expiry details). In the course of transactions, this MPIN is used to authenticate a transaction. You can also change the MPIN if you forget it, using the same create/generate MPIN tab.  

UPI Security feature 3: Signed intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds remain low. Hence, signed intent and QR features bring in secure and tamper-proof transactions.

UPI Security feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before initiating your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

 

Security Feature of Digital Card

Comparatively, Digital card offers different security features. Nevertheless, it is unique and robust in itself.

For example, Digital cards have an option of confirming the transaction either using password or an OTP (one time password). Also, some banks require you to not repeat the previous three used passwords. Further, SMS cum Email alert is sent for each transaction.

 

Security Feature of Wallet

As compared to UPI, wallets offer a lesser level of security. For example, many wallets do not offer two-factor authentication. But on the other hand, the QR code feature of wallets minimizes the payment data.

Nevertheless, there is a chance of security compromise in the case of wallets due to the indirect involvement of the bank. It is basically a wallet to wallet money transfer.

Summary

  • UPI offers security via 2 factor authentication, QR & Signed Intent and Invoice in Inbox
  • Digital Card security is via password or OTP
  • Wallet security follows a 1 factor authentication

References:

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artificial intelligence Banking digital payments fintech Hybrid payment gateway

Can Artificial Intelligence Bring Magic for UPI Payments in 2020?

AI is here to simplify your business’s payments

When was the last time you logged into a payment gateway website and was greeted by a chatbot? What was your feeling when all your queries were addressed in a seamless and systematic manner? Did you ever wonder what drives the chatbots? The answer lies in the magic of artificial intelligence.

Artificial intelligence is making great strides in the payments domain while bringing in automation and added security features. For example, ILA is SBI Card’s live assistant providing you with the information on the latest products. Similarly, Mansha AI is SabPaisa’s AI assistant that makes use of artificial intelligence to answer all the payment related queries.

In the course of this blog, let us delve deep into the prospects of artificial intelligence in the payments domain.

1. Artificial Intelligence and Automation

The crux of artificial intelligence lies in automating your payment process coupled with automated queries. Imagine you face a payment issue while transacting on a payment gateway or a bank page, how would you feel if there is no customer support available? You feel stranded and left out. But, imagine a chatbot offering you help without any prior notice. Your payment issue is clarified instantly and money remains in safe hands.

Take another case, imagine you want to apply for a credit card. There are a lot of options that are confusing. You keep searching day and night, staring at a dead end. But, imagine if AI can help you assist with the ideal card based on your credit history, how would it feel? One can benefit from the right guidance of AI technology.

2. Artificial Intelligence and Database Management

Payments domain comes with a huge database of banks, customers, merchants, clients, etc. Isn’t it time-consuming to manually sort the database to get the desired information? But, don’t worry, database management is just a click away with the coming of AI. For example, artificial intelligence can give a personalized user experience. By analyzing your data and personal transaction history, a value add suggestion is put forth for future transactions.

Further, by going through your spending history, AI would suggest you the best savings and expenditure plan. In this way, Artificial intelligence inculcates prudent money management.

3. Artificial Intelligence and Fraud Handling

Payments domain faces many frauds like phishing, data theft, merchant fraud, friendly fraud, etc. This results in numerous security risks resulting in a massive loss of revenues. AI can pitch in at this juncture to bring in a fraud-free atmosphere.

Organizations are making use of predictive cum prescriptive analysis to detect fraud in payment transactions. For example, banks are using this method to detect fraud in recurring payments, mobile banking apps or remote ordering of services.

4. Artificial Intelligence and Compliance

Tired of following up with your customers on timely payments? Don’t worry, AI is here to help you out. An automated follow-up mail coupled with instant blocking of defaulting account brings in financial discipline. This keeps a check on willful defaulters which are on a rise.

In other words, AI can speed up timely payments thereby increasing revenue for the government and companies alike.

5. Artificial Intelligence and Reduction in False Declines

You might have experienced an unexpected rejection of your payments on the last stage checkout process. This false decline is due to the system falsely identifying some suspicious activity during your payment process. Here is where AI can come in to solve the problem. In other words, the AI algorithm can rightly distinguish between the right and false declines. Going ahead, this brings in huge relief and convenience to the banks, payment gateways and customers alike.

Summary:

  1. AI brings in the automation of the payment process
  2. Database management is eased with the help of AI
  3. AI helps in fraud management
  4. User compliance is ensured via AI
  5. Reduction of false decline is ensured via AI

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date.

Learn more about SabPaisa here: https://sabpaisa.in

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Banking digital payments fintech payment gateway

5 Ways How UPI is Changing the Payments Ecosystem in India

UPI has touched almost all sectors of India

Last week, I was at a new tea shop near my house. The tea cost me a meager ten rupees. But, upon checking my wallet, I was shocked to find it empty. The shop owner read my situation and told me, “Madam you can pay via GooglePay. Look at the code scanner, just scan and pay.” Then came the live-action of the UPI payments ecosystem in India.

I was in for another shock when my Google pay account was temporarily down. I saw the customer queue increasing. Immediately, I downloaded Phonepay into my mobile. Phonepay is a prominent app which supports UPI transaction. The payment took place within no time. This is the outreach of the UPI across the payments ecosystem in India.

UPI Payments Ecosystem in India

Why has UPI captured the payments space within four years of its inception? What makes it stand out from wallets or digital cards? UPI offers an immediate payment service with the help of either a VPA, mobile number or Aadhaar number. It makes the transaction channel secure and hassle-free.

UPI has made its mark felt in the different sectors of the Indian economy like Education, Health, Social Sector Schemes, etc. In the course of this blog, let us explore the outreach of the UPI payments ecosystem in India.

Payments Ecosystem 1: Government Schemes

Government of India’s flagship program Digital India aims to make India a digitally empowered society. Launched in the year 2015, Digital India relies on advanced technological infrastructure to serve the needs of the customer. Of this, digital payment forms an important cum core part.

In tune with its Digital India initiative, the government launched the BHIM UPI (Bharat Interface for Money). It makes use of the UPI platform for immediate bank to bank money transfer. Transfer validation happens either using a VPA (Virtual Payment Address) or a mobile number.

Key government schemes like Jan Dhan Yojana and Direct Benefits Transfer (DBT) have started using the UPI payments interface, transitioning from the RTGS or the NEFT based platform. It brings in ease and security to the payment transactions since the user does not have to remember complex details like the account number, bank name, etc.

Payments Ecosystem 2: Education

The education sector is witnessing rapid stride in the use of the UPI Platform. Payment platforms like Razorpay, Instamojo, SabPaisa, etc. have enabled it on their platform. For example, SabPaisa is the world’s first hybrid payment platform. It offers numerous payment modes ranging from UPI to Cards to Netbanking to Cash to NEFT. UPI is one of the focal product that helps in seamless payment transmission while paying college admission fees or paying the late fine.

Payments Ecosystem 3: Health

Health schemes in India are transitioning to the use of digital payments like UPI. Further, to promote the use of UPI, the government provides a number of incentives.

The major health schemes in India are Universal Health Insurance Scheme (UHIS), Ayushman Bharat, Aam Aadmi Bima Yojana (AABY), Rashtriya Swasthiya Bima Yojana (RSBY), etc. As part of the schemes, patients can pay through various digital modes like UPI, BHIM, credit/debit cards and wallets. The Ministry of Health and Family has issued advisories to all government and private hospitals to facilitate digital payments for ease of transactions.

Payments Ecosystem 4: Business

The business sector is witnessing new opportunities with the rapid advancements in UPI. For example, Fintech companies in India are being flooded with requests at an international level for UPI customization. Further, NPCI has relaxed the rules for small companies by increasing their monthly limit of Rs. 50,000. Also, the merchant onboarded under this category does not have to pay anything to the acquirer.

Payments Ecosystem 5: Miscellaneous

UPI has pervaded every aspect of our life. In addition to Tier I cities, Tier II and Tier III have seen an increased use of UPI. For example, if a user in a Tier III city wants to do a DTH recharge, he has to simply open the UPI app on his mobile and scan the code on the TV screen to kickstart the payment process. Similarly, UPI is used to buy on-demand movies in a seamless manner with the click of a button.

On the whole, UPI is the ripe technology of the future which continues to make notable advancements in a rapid manner. From education to the business sector, UPI has touched upon all the major sectors of the Indian Economy. In commensuration with Artificial Intelligence and Machine Learning, UPI holds significant promise for the future.

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date.

Learn more about SabPaisa here: https://sabpaisa.in

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Banking digital payments fintech payment gateway

Top Five UPI Platforms to Lessen your Payment Headache

Know the UPI Platforms that is best for you

When was the last time you did a digital payment? How pleasant or nasty was the process? What was the major challenge that you faced? Was it a Net connectivity issue or a wallet loading issue? Did you try using the UPI platforms?

UPI is rapidly taking over the payments space in India. Did you know that UPI platforms will dominate the payments space with 59% payment transactions in the near future? Mind-boggling isn’t it?

UPI Platforms - UPI Apps
UPI Platforms – UPI Apps

UPI or Unified Payments Interface is a next-generation instant payment platform built by NPCI (National Payments Corporation of India). With a simple account to account transfer process using the VPA (Virtual Payment Address), UPI is the favorite of Indians running across different classes. Interestingly, UPI crossed the landmark 1 billion mark in October 2019.

There are a number of UPI platforms that are both App as well as non-App based. Each of them offers a unique user interface based on the different user requirements. But, how to select the best UPI platform?

In the course of this blog, I will give you a tour of the top UPI platforms. Hope this helps you in both your personal and professional endeavor.

1. UPI Platforms 1: GooglePay

UPI Platforms - Google Pay
UPI Platforms – Google Pay

Google Pay is one of the popular payment apps from Google. Unlike BHIM App, Google Pay does not call for Aadhaar verification. There is a direct linkage of bank account using details like name, account number, IFSC Code, etc. Also, Google Pay (Tez) has a unique feature of AudioQR sharing directly from one mobile to another. Further, like BHIM UPI App, the amount is transferred from a bank account to another, thereby reducing the need for an intermediary wallet.

Going ahead, Google Pay is also expected to support Credit Cards, Debit Cards, and e-wallets. 

2. PhonePe

UPI Platforms - Phonepe
UPI Platforms – PhonePe

PhonePe is a popular payment app with the option of UPI connectivity. The most important feature is the option of an additional wallet link and non-necessity of initial login. There is no option of mandatory login using the Phonepe App. One can directly login to the site using the website URL. Also, Phonepe gives access to popular linked wallets like JioMoney, Airtel Money, Freecharge, etc.

Going ahead, Phonepe has an innovative feature of navigating between over 50 apps. This is possible without downloading the app on your mobile or updating the same.

3. UPI Platforms 2: BHIM UPI

UPI Platforms - BHIM UPI
UPI Platforms – BHIM UPI

BHIM App is the most popular UPI payment App. It has an interesting feature of making UPI transactions from different banks on a single platform. Interestingly, BHIM App at present is available in 13 languages.

In addition to, Send Money, Receive Money and Scan & Pay option, you can also check your pending transactions via BHIM App. There is also an option of raising complaints about the declined transactions.

Further, the built-in security feature allows you to block users who put forth illicit money requests. Also, the user privacy feature enables you to disable your first UPI Id in case of the generation of a secondary UPI Id.

Going ahead, you don’t have to worry about payment reminders or splitting bills. There is an option to set a payment reminder as well as split bill with multiple UPI users in an instant.

4. Paytm

UPI Platforms – Paytm

Recently, Paytm has enabled BHIM UPI on its payment platform. It follows a simple setup process with the selection of the ‘UPI App’ option from the Paytm App. Once the bank account and mobile number are verified, you can set the MPIN to start the transactions. The UPI Id follows the format [email protected]

Further, on changing the mobile, the verification of the new mobile number is mandatory to use BHIM UPI on Paytm.

5. SabPaisa

UPI Platforms - SabPaisa UPI
UPI Platforms – SabPaisa UPI

SabPaisa is the next generation payment platform that offers a hybrid payment gateway model ( e-offline + e-online ). It is the only hybrid (online+offline) payment platform in the world that provides businesses and organizations a single unified dashboard for collecting payments from their customers/members through any and all channels, online or offline, from UPI to Cash.

Once a customer chooses to make payment through the SabPaisa platform, he/she is guided to the checkout page with UPI as one of the prominent options for payment. In the next step, the customer has to enter the Virtual Payment Address (VPA) to initiate the transaction.

On the whole, UPI continues to rule the roost with its simple yet innovative features. From direct bank to bank transactions to AudioQR based payments (in Google Tez), UPI gives you the option of performing hassle-free payments. Further, with UPI platforms like SabPaisa, you can realize the potential of online cum offline payments.

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here: https://sabpaisa.in